Academia Open
Vol 10 No 1 (2025): June (In Progress)
Business and Economics

Lease Accounting Transformation under IFRS 16: Recognition and Reporting Changes
Transformasi Akuntansi Sewa Guna Usaha di bawah IFRS 16: Perubahan Pengakuan dan Pelaporan


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  • Yusupova Malika Botiralievna*
Yusupova Malika Botiralievna
Andijan State Technical Institute, Andijan city, Uzbekistan *

(*) Corresponding Author
Picture in here are illustration from public domain image or provided by the author, as part of their works
DOI: https://doi.org/10.21070/acopen.10.2025.10801
Published April 8, 2025
Keywords
  • IFRS 16,
  • lease accounting,
  • financial reporting,
  • right-of-use asset,
  • IAS 17
How to Cite
Botiralievna, Y. M. (2025). Lease Accounting Transformation under IFRS 16: Recognition and Reporting Changes. Academia Open, 10(1), 10.21070/acopen.10.2025.10801. https://doi.org/10.21070/acopen.10.2025.10801

Copyright (c) 2025 Yusupova Malika Botiralievna

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

General Background: Lease accounting plays a critical role in financial reporting by ensuring transparency in a company’s asset usage and obligations. Specific Background: The shift from International Accounting Standard (IAS) 17 to International Financial Reporting Standard (IFRS) 16 represents a major development in the recognition and presentation of lease transactions. Knowledge Gap: Despite the adoption of IFRS 16, several academic and practical sources have failed to comprehensively address its implications and how it differs from the previous standard. Aims: This article aims to analyze the key features of IFRS 16, compare them with IAS 17, and evaluate their impact on financial statements. Results: The study reveals that IFRS 16 introduces a unified accounting model for lessees, requiring recognition of right-of-use assets and lease liabilities, thereby significantly affecting financial position and performance metrics. Novelty: Unlike prior literature that either overlooks or addresses lease accounting from a narrow national perspective, this article presents a comprehensive comparison grounded in international standards, supported by expert insights and real-world implications. Implications: The findings underscore the need for enterprises to adapt their accounting systems and internal processes to ensure compliance and maintain transparency, highlighting the importance of aligning national standards with IFRS to enhance global comparability in financial reporting.

Highlights:

 

  1. IFRS 16 requires lease liabilities and right-of-use asset recognition.

  2. Enhances financial transparency and reporting consistency.

  3. Replaces IAS 17’s off-balance-sheet lease approach.

 

Keywords: IFRS 16, lease accounting, financial reporting, right-of-use asset, IAS 17

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References

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